The Superintendency of the Financial System will manage a single database that will guarantee the consistency and integrity of the data, containing unified information on all members and employers registered with the Pension Fund Administrator, the Salvadoran Social Security and Pension Institute, or the Pension Unit , as well as with the Superintendency.
In this system, employers will prepare and declare the payrolls of the Pension System and the Salvadoran Social Security Institute, which will be used to determine the amount of the contributions and generate the obligation of payment based on the presentation of the declarations, said system will be effective as of July 1, 2023.
The Single Payroll System replaces the ISSS Virtual Office (OVISSS) for Social Security reporting and the Provisional Payroll Preparation System (SEPP) for Pension Administration reporting, unifying the system to avoid inconsistencies and ensure proper administration by the institutions involved and employers.
The Superintendency will manage the users with their corresponding roles to access the SPU for the preparation of the forms, and we must take into account that:
- In order to file pension return declarations, employers must request the Superintendency to electronically register their company or business. To do so, they must complete the required fields on the respective forms.
- Once registered, employers will be able to access the SPU through their users and their login credentials. They will be able to view their employees’ information and prepare, declare, and pay the respective pension and employer-employee payrolls.
- In order for employers to be able to correctly and efficiently prepare any type of pension form in the SPU, the necessary validations or respective controls must be configured for each type of pension form within said System, so that employers can declare contributions to the pension fund and social security according to the pension conditions of the affiliate at the time of processing said form.
- The creation and management of SPU users will be carried out in accordance with the details and technical manuals issued for this purpose by the Superintendency.
- To ensure the correct use of the SPU, employers must ensure that the payroll manager makes proper use of the system’s operating manuals, as well as the assigned username and password, ensuring the privacy and integrity of the information reported.
Obligations for employers in El Salvador:
With the implementation of the New Single Payroll, employers have new obligations and responsibilities. Some of the most relevant are:
- The Employers must record and keep their employees’ information up-to-date on the Single Payroll platform. This includes personal information, salaries, withholdings, and any other data relevant to payroll calculations.
- Employers must calculate the wages and withholdings corresponding to each employee, taking into account current legislation and tax regulations.
- The Single Form allows you to generate payment vouchers electronically to make the respective payments to authorized financial institutions in our country.
Other considerations:
- Taxpaying institutions must report, daily or in real time, to the Superintendency, through the technical mechanisms established by the Superintendency, the payment of the payrolls generated through the SPU.
- The Superintendency will share the necessary information with the Pension Institute for its oversight and control activities, ensuring that all entities subject to the obligation to declare and pay contributions of any kind comply with them in a timely manner.
- The mechanisms through which information will be shared will be defined by the Superintendency in coordination with the Pension Institute.
- To ensure that the declaration, payment, collection and related activities are carried out effectively, the Superintendency will update the SPU as many times as it deems necessary and in accordance with the functionalities required so that Pension Institutions and employers, administrators and users of said system can validate, correct, substitute and process the information, within the established legal deadlines, and will also keep the corresponding manuals and forms updated, ensuring their timely communication to Pension Institutions and employers.
What institutions are linked to the Single Payroll System?
- Pension Fund Administrators
- The Salvadoran Pension Institute
- The Salvadoran Social Security Institute; and
- Financial institutions that provide services to Pension Fund Administrators, regarding the management of current accounts owned by the Pension Fund they manage.
What are the benefits of the new single payroll for employers?
The implementation of the New Single Payroll offers a series of benefits for employers, including:
- It is a mechanism that will make it easier for employers to prepare any type of payroll in a single form and that is required for the declaration of contributions to the pension fund and social security in El Salvador, within the deadline and according to the corresponding accrual month.
- Simplification of the process, as the Single Payroll System replaces old forms and reduces the administrative burden associated with a company’s payroll process, as it includes both institutions in a single monthly report. • Avoids inconsistencies in payrolls by automating the process.
- Transparent reporting is provided throughout all quotation processes.
- The online platform allows employers and employees to access their updated payroll information anytime, anywhere, facilitating decision-making, financial and human resource management, and monthly business forecasting.
